Larry Summers says $30 trillion national debt will NOT collapse the U.S. dollar

It’s official: The U.S. federal deficit was $3.1 trillion in the last fiscal year. This means the national debt is on track to top $30 trillion in a couple of years.

With the U.S. government likely to approve another spending bill, and a possible Joe Biden administration to ramp up spending, it is inevitable that the Federal Reserve will be mandated to monetize the debt and apply pressure on the U.S. dollar.

But don’t worry, says former Treasury Secretary Larry Summer.

Speaking in an interview with CNN (LOL), Summers noted that the dollar is not under threat and that Washington should actually spend more.

Uh, huh.

“The dollar is the world’s safe haven. It’s the place that money moves into when people get nervous about the state of the world. All of the dangers are on the side of spending too little right now, rather than spending too much,” he said.

“The fact that we’ve got an interest rate that’s essentially zero is telling us that the funds are available, and they are not going to crowd out anything important.”

Rates are zero because the Federal Reserve arbitrarily and artificially set it.

But he is right about one thing: Without additional stimulus, the U.S. economy is doomed. The economy and the stock market are hanging on by a thread without trillions in new spending.